Ok...so I decided (after I finished the first post) to share what NOT TO DO on a pot holder loom. You definitely want to use yarn that is the appropriate size for the spacing of your nails/pegs.
I really was disappointed, the first one even turned out better than this one. The second one, the white with delicate threads of purple and green added in, turned out perfect...this one a total failure. Bummer...Self taught is definitely a great way to "learn from your mistakes". Never never never use too fine a yarn on this particular loom. LOL! Notice how sloppy the edges are.